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Selig: Changes won't end AR Medicaid shortfall

Human Services Director John Selig said a change in the way Medicaid pays for services in Arkansas and efforts to cut out fraud and waste won't eliminate the up to $400 million shortfall the state program faces next year.

LITTLE ROCK, Ark. (AP) — Human Services Director John Selig said a change in the way Medicaid pays for services in Arkansas and efforts to cut out fraud and waste won't eliminate the up to $400 million shortfall the state program faces next year.

Selig and state Medicaid Director Andy Allison told lawmakers Monday that they'll have a more firm number on the state's Medicaid shortfall later this year. State officials have estimated the program could have a deficit between $250 million and $400 million in the budget year that begins July 1, 2013.

Selig and Allison said an unknown factor for that estimate is the impact of the federal health care law. The state plans a new effort later this year to change the way Medicaid pays for services.

 

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